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Jun 17, 2024 · First-time home buyers who acquire a qualifying home can claim a non-refundable tax credit of up to $750. The value of the HBTC is calculated by multiplying $5,000 by the lowest personal income tax rate (15% in 2022). 2.
- Overview
- What are these tax incentives for first-time home buyers you ask?
November 6, 2023
Ottawa, Ontario
Canada Revenue Agency
Entering the housing market is not easy these days and this is true in many communities across Canada. Prices are high, competition is stiff and market conditions seem to shift quickly. Many of us wonder how we can break into the market, and how we can stretch our dollars as far as possible.
November is Financial Literacy Month, a time for organizations across Canada to come together to talk about personal finances, and how to manage different aspects of them. When we think about how best to manage our money, and what we want to accomplish with it, purchasing a first home is often at the top of the list. Let’s face it, it is not always easy to know what mechanisms are out there that we can take advantage of. That is why, in November, various financial organizations are talking about available financial tools and resources to get the conversation going!
No surprise that, here at the Canada Revenue Agency (CRA), we want to talk to you about tax incentives. And this year, we particularly want to tell you about housing, and what is available to help. You might be considering whether you can buy your first house. It is possible you feel discouraged by this exercise. Maybe you are so close to breaking through but it hasn’t quite happened yet. You may qualify for benefits, credits, or tax incentives administered by the CRA for first-time homebuyers. It could be that these incentives are just what you need.
What’s new?
First Home Savings Account (FHSA) The FHSA is a registered account that could allow you to save for your first home with tax advantages. Contributions are generally tax deductible and withdrawals for the purpose of buying or building a qualifying home are tax-free. Existing measures for first-time home buyers Home Buyers’ Plan (HBP) The HBP could allow you to withdraw up to $35,000 from your registered retirement savings plan (RRSP) to buy or build a home for yourself or a related person with a disability. The withdrawal is tax-free if it is paid back within the required timeframe. Did you know: You could make withdraw from your FHSA and your RRSP under the HBP for the same home, as long as you meet all of the conditions at the time of each withdrawal. First-Time Home Buyer’s Tax Credit (HBTC) The HBTC could allow first-time home buyers who acquire a home to claim a non-refundable tax credit of up to $1,500. GST/HST New Housing Rebate The GST/HST rebate is available for new home purchases and could reduce upfront costs to help make homeownership more affordable. Other programs for first-time home buyers Aside from the incentives administered by the CRA, check out some of the other programs available for first-time home buyers. The Government of Canada offers a first-time home buyer incentive and new construction funding for Indigenous housing for on and off reserve communities in Canada. To sum up, here is what you need to know. The Government of Canada has benefits, credits, and incentives to support you as a first-time homebuyer. To access these and other tools and resources, make it a habit of filling your income tax return each year! Cheers to November and Financial Literacy Month! For more information on the CRA’s Financial Literacy Month initiatives, check out Canada.ca/housing-cra.
May 4, 2021 · Here’s what the changes look like. First-time home buyers with a household income of $150,000 or less can participate (up from $120,000). First-time home buyers can buy a home up to 4.5 times ...
Mar 1, 2024 · The first-time homebuyer incentive has been discontinued by the Canada Mortgage and Housing Corporation (CMHC), the federal agency announced on Thursday. The deadline for new or resubmitted ...
Mar 1, 2024 · The first-time homebuyer incentive was launched in 2019 with a $1.25-billion commitment. As of the end of 2022, CMHC had committed $329 million representing about 18,500 applications. This report ...
Using the FTHBI, home buyers can receive 5% for the first purchase of a resale home, or 5% or 10% of a newly-constructed home, allowing them to pay a smaller down payment. In exchange, the government shares in the upside and downside of the property’s equity, up to a maximum of 8% per annum. The home buyer must repay the FTHBI after 25 years ...
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Mar 1, 2024 · The first-time homebuyer incentive has been discontinued by the Canada Mortgage and Housing Corporation (CMHC), the federal agency announced on Thursday. The deadline for new or resubmitted applications to the program is midnight ET on March 21, 2024, according to the CMHC's website. Launched in 2019, the plan was meant to help reduce monthly mortgage payments for first-time buyers by having ...
